The decision to rehire former City Manager Josh Pinheiro, alongside a $1.8 million settlement, has ignited significant debate throughout Los Banos. After months of extensive investigation, which included interviews with former employees and comprehensive public records requests, we’ve uncovered troubling details that demand closer scrutiny. From his questionable leadership track record to the opaque processes surrounding his rehiring, the city must reflect on how it reached this point.
Pinheiro’s Troubled Leadership History
Before stepping into public service, Pinheiro held a managerial role at Tesla, where his leadership style first raised red flags. A former Tesla employee, who spoke to us on the record, described how Pinheiro retaliated against staff who challenged his decisions. “When I told him I didn’t think he had what it takes to do the job, he retaliated by making my work life much harder,” the employee recalled. The employee also reported that Pinheiro fostered a toxic environment, where intimidation and fear of retribution were commonplace.
The toxic atmosphere culminated in a meeting between Tesla’s regional manager, HR, and the team. Employees expressed their frustration, explaining they didn’t feel safe speaking up and feared for their job security. Shortly after, Pinheiro was allegedly escorted out and fired. Accusations of bullying and intimidation at Tesla were later echoed by staff in Los Banos during his first stint as City Manager. Despite these serious complaints, the city council voted to rehire him under more favorable terms than before.
The $1.8 Million Settlement and the Cost to Taxpayers
The most contentious part of Pinheiro’s rehiring was the $1.8 million settlement—paid entirely by the taxpayers of Los Banos. This payment, made without a lawsuit or independent investigation, was rejected by the city’s insurance provider, Indian Harbor, which refused to cover the payout because it was made outside their legal counsel’s advice. As a result, the entire financial burden was placed on the city’s general fund—money that could have been used for critical services, infrastructure, or community projects.
The settlement, negotiated privately, represents nearly 10% of Los Banos’ unallocated funds, a shocking amount for a small city already facing financial challenges. What’s even more concerning is that this $1.8 million was paid without the usual scrutiny that such a significant expenditure should undergo. No public hearings, no independent inquiry, and no clear justification were provided. This lack of due diligence raises serious questions about why the settlement was approved so hastily and whether it was in the best interest of the residents.
Pinheiro’s New Employment Agreement: Enhanced Protections
Beyond the financial settlement, Pinheiro’s new employment contract includes several added protections that make his position nearly invincible. Unlike his original 2021 contract, which allowed for termination by a simple majority, his new agreement requires a unanimous 5-0 vote from the City Council to remove him from office. This unprecedented level of job security means that even if a majority of councilmembers lose confidence in his leadership, they would be powerless to remove him without total consensus.
In addition to these protections, Pinheiro’s severance pay was increased from three months to twelve months, ensuring that should he be terminated, he will walk away with a year’s worth of salary. His base salary was also increased to $215,000, making him the least experienced yet highest-paid City Manager in Los Banos history. To put this into perspective, Pinheiro now earns more than the city managers of larger, more established Central Valley cities, despite his relatively modest resume and a history of management failures.
At a time when the city faces pressing financial needs, including unfinished access roads and parks, the question of why the council chose to rehire a manager with a troubling history—at a significantly increased salary—remains unanswered. The financial burden placed on the city’s residents is not justifiable, especially when weighed against the costs and risks associated with his continued employment.
Why Was He Rehired?
The question we must ask is why? Why was a leader with such a problematic track record rehired under such favorable terms, and why was this done at such great financial cost to the taxpayers? The answers remain elusive, but what is clear is that this decision was not made with the transparency that Los Banos deserves. The opaque process surrounding both his termination and subsequent rehiring raises serious concerns about how city leadership operates behind closed doors.
While some councilmembers defended the rehiring, claiming that Pinheiro’s local connections made him a better fit than outside candidates, this reasoning does little to justify the financial and legal risks now carried by the city. In a small town like Los Banos, personal connections should never take precedence over accountability, transparency, and fiscal responsibility.
The Recall Effort
This entire situation has left many residents and stakeholders frustrated and searching for accountability. It was the rehiring of Josh Pinheiro, along with the hefty payout and enhanced job protections, that ultimately catalyzed the current recall effort aimed at Councilmembers Brett Jones and Doug Begonia, who were instrumental in orchestrating this deal. For many, the decision to rehire Pinheiro represents not just a failure of leadership, but a betrayal of public trust.
As early voting approaches, the residents of Los Banos have an opportunity to voice their discontent and demand better leadership—leadership that prioritizes the interests of the community over personal connections and political convenience. The recall vote is about more than just a single decision; it’s about setting a standard for how city leaders should act in the best interests of their constituents.